This Is Why You Should Watch Key Support Levels
Dell Inc (DELL) closed
just above the bottom of a descending triangle last Friday. If the
stock could not hold above this key level, I thought it might have a good chance
to test the upper boundary of a gap zone.
09:43:48 (From TradersWire)
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
Sell |
DELL | sell stop at 39.48 | testing an important support level on a daily chart |
39.63 | 39 | 39.54 |
TK |
Now, let’s look at the 5-minute
chart from today’s session. My trading plan was simple. I wanted to short DELL
as soon as it slipped below the bottom of a descending triangle. I placed a sell
stop just below 39.50. Shortly after 9:45, the stock broke down on heavy volume.
10:05:37
Follow up on DELL (Pt 2)
It appears to be forming a support at 39.30. Cover the rest or move stop to
39.38.
T.Kamada
If you have questions, feel free to
mail them to me.
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